General Motors this morning announced it will buy 200 million shares off of the U.S. Treasury at $27.50 a share, with plans for the government to dispose of the rest of its 300 million stake over the next 12-15 months, bringing to a close the government’s historic and controversial bailout of the storied auto maker.

It’s a nice deal, for GM. It’s not so hot for you.

The purchase price is a roughly 8% premium to yesterday’s closing price of $25.49, and the stock has quickly risen to roughly $27.50. That’s good for shareholders; not only have GM shares spent most of their second life below the December 2010 IPO price of $33 a share, the government stake has been an overhang of sorts. So this is giving the stock a nice lift.

Comments (5 of 5)

The UAW is the Chief Thief in this whole mess. You losers are glorified welfare recipients.

3:18 pm December 19, 2012

Anonymous wrote :

I still want to know who in the Obama administration said it was OK for GM to spend almost $6 billion in cash to buy back stock when they could have used that money to make up for at least some part of what they've taken away from the UAW. That $6 billion could have gone to increasing wages of new employees, it could have gone to year-end bonuses to existing employees, it could have gone to keeping the Malibu plant in Kansas open (I think it's been idled for about 6 weeks), it could have put a little cushion in the pension fund, ....

Instead, GM used it to buy back stock that could have just as easily been sold to the public. Where is the reaction from the UAW to this outright "theft"? Where is Obama's defense of this in light of his commitments to unions and the working class?

1:57 pm December 19, 2012

Dan wrote :

Gark.

All caps is nice touch

1:56 pm December 19, 2012

Dan wrote :

Tarp is net profitable. Get over it.

1:17 pm December 19, 2012

GARK wrote :

CAN SOMEONE TELL ME WHO IN OUR GOVERNMENT HAS THE AUTHORITY TO MAKE A DECISION THAT RESULTS IN A LOSS TO THE TAXPAYERS OF BILLIONS OF OUT TAX DOLLARS. THEY OBVIOUSLY DO NOT HAVE ANY FINANCIAL ACCUMEN. WAITING WAS THE PRUDENT COURSE OF ACTION

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